COGS of Infy and Dominos



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In the operating expenses video you said salary is included in Opex,but in expense recognition video,you gave the example comparing COGS of Infy and Dominos,
there you said Employee salary is COGS.So i just got confused.

1 Answer(s)


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It depends on the company and the industry. In a company like Dominos, salary will be in the Opex (since Dominos makes pizzas and labor is a smaller ingredient in making a pizza while compared to the pzza ingredients) and in a company like Infosys some of the salary will be in the COGS (since infosys makes software and to make software the biggest input is labour)